BLIND SPOTS EXPOSED
Although there is some disagreement over whether DeepSeek has told the entire history, this show has exposed “groupthink” in the British AI industry. Its deafness to solution, cheaper, more encouraging approaches, combined with enthusiasm, is exactly what Simon Johnson and I predicted in Power and Progress, which we wrote just before the generative-AI time began.  ,
The question is then whether the US economy has any other, even more risky blind spots. For instance, are the leading US tech firms missing an opportunity to get their designs in a more “pro-human way”? I’m sure the answer may be well, but only time will tell.
Then there is the issue of whether China is outperforming the US. If so, does this mean that authoritarian, top-down structures ( what James A Robinson and I have called “extractive institutions” ) can match or even outperform bottom-up arrangements in driving innovation?
My discrimination is to believe that top-down power hampers development, as Robinson and I argued in Why Governments Fail. Although DeepSeek’s success makes it seem unlikely to dispute this assertion, it is far from convincing evidence that innovation can be as potent or resilient under inclusive institutions.  ,
After all, DeepSeek is building on decades of advancements in the US and some of Europe. In the US, all of its fundamental techniques were used as models. Mixture-of-experts designs and support understanding were developed in scientific research organizations decades ago, and it was US Big Tech firms that introduced converter models, chain-of-thought argument, and evaporation.
What DeepSeek has accomplished is exhibit its engineering success: utilizing the same techniques more efficiently than US businesses. Will Chinese companies and research institutes be able to develop innovative products, techniques, and strategies that will change the game in the future.
In addition, DeepSeek appears to be different from most other Chinese Artificial companies, which typically develop technology for the state or receive funding from the government. Does the company’s creativity and vitality continue now that it is in the light if it ( which was spun out of a hedge fund ) was operating under the radar?  ,
Whatever happens, one company’s success cannot be taken as compelling evidence that China can defeat more open cultures at technology.